For many co-op and condominium boards, building maintenance is viewed primarily as an operational responsibility. Roofs need inspections, façades require repairs, and mechanical systems eventually need replacement. While these tasks are essential for protecting property values and resident safety, they also play a critical role in a building’s insurance program. Many boards fail to recognize that deferred maintenance can directly affect claims, deductibles, premiums, and, in some cases, a property's ability to obtain insurance at all.

When underwriters evaluate a building, they look beyond its loss history. They’re also assessing the likelihood of future claims. A well-maintained building generally presents a lower risk than one with aging systems, unresolved violations, recurring water intrusion, or deteriorating building components. Issues that commonly raise concerns include:

• Unresolved violations

• Outdated electrical systems

• Deteriorated façades or balconies

• Aging roofs with signs of leakage

• Repeated water damage claims

• Poor maintenance records

Insurers recognize that many of the largest claims originate from maintenance-related issues rather than sudden, unpredictable events. This includes water damage, which remains one of the most frequent sources of insurance claims in community associations. A failed water heater, burst pipe, deteriorated hose connection, or unresolved roof leak can damage multiple units and common areas. What may have started as a relatively minor maintenance issue can quickly become a six-figure claim. That’s why regular inspections of plumbing systems, roofs, and mechanical equipment are so important to help identify potential issues before they result in substantial losses.

Many boards focus on premium increases without considering what drives them. Frequent claims resulting from preventable maintenance issues can affect premiums, deductibles, coverage terms, market availability, and carrier willingness to renew coverage. A building that demonstrates proactive maintenance may be viewed more favorably during renewal negotiations than a building with recurring maintenance-related losses.

It’s also important to recognize that maintenance is not only about performing repairs, but also about documenting them. Boards should maintain records of all inspections, upgrades, and maintenance for the building itself and all its mechanical systems. Documentation can be valuable during underwriting reviews, and may help demonstrate that the association has taken reasonable steps to mitigate risk. In some situations, these records may also matter during the claims process, if questions arise about the cause of a loss.

Working with outside contractors adds another layer of risk. Before any work begins, boards should ensure that contractors provide certificates of insurance for general liability and workers’ compensation coverage, additional insured status for the association and managing agent, as well as hold-harmless and indemnification agreements. Failure to properly transfer risk can expose the association to significant liability if an injury or property damage claim arises from a contractor's work.

In an increasingly challenging insurance marketplace, maintaining your property's physical condition is one of the most effective steps your board can take to protect both your residents and your insurance program. The better your building is maintained, the better positioned it is to reduce claims, control costs, and remain an attractive risk to insurance carriers.

Vanessa Cusumano, ACSR, is an insurance consultant with Mackoul Risk Solutions. She may be reached at vcusumano@mackoul.com.